Ittium : Licensing Intellectual Property

Till now we have seen services company and product companies. All the major IT giants in India like Wipro, Infosys, TCS, Satyam .... are dominantly Services Company. There are very few handful of product companies in India due to lack of maturity in country, policies, market , finanance, talent, attitude and lots of other business environment factors. Some companies like Ittium Systems has taken a middle path called 'IP Licensing' for example they do not code on project basis for some other product company, instead they provide their code on "Royaly Basis". This has enabled them to have decent revenues and profits. The reason for others not following this model is (a) one cannot expect to generate revenue in 100s millions, since this working models has a specfic need and application (2) The IP licensing based companies has to continuously search for new contracts and projects since the tenure of a license is very short 3-5 years max as it appplies to a product in which the technology is used and the product life cycle is very short these days. Read the fully story in Business World
Links :

* Intellectual Property Rights in India Embassy of India

* IP Firms : India